JLB & Associates Inc. Makes New Investment in Aon plc $AON

Key Points

• JLB & Associates initiated a new position in Aon, buying 64,912 shares worth about $22.9 million, which represents roughly 3.1% of its portfolio and is its 10th-largest holding.
• Aon beat quarterly expectations, reporting $6.48 EPS versus $6.37 expected and revenue of $5.03 billion (up 6.4% year-over-year), with strong profitability metrics (net margin 22.54%, ROE 43.5%).
• Aon raised its quarterly dividend to $0.82 (annualized $3.28, ~1.0% yield); Wall Street sentiment is Mostly Positive with an average price target of about $397.88 and a “Moderate Buy” consensus.

JLB & Associates Inc. bought a new stake in Aon plc (NYSE:AON - Free Report) during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm bought 64,912 shares of the financial services provider's stock, valued at approximately $22,906,000. AON makes up approximately 3.1% of JLB & Associates Inc.'s investment portfolio, making the stock its 10th biggest position.

Several other institutional investors have also bought and sold shares of AON. Murphy Middleton Hinkle & Parker Inc. bought a new position in shares of AON during the fourth quarter valued at about $4,305,000. Callan Family Office LLC grew its position in AON by 220.7% in the 3rd quarter. Callan Family Office LLC now owns 11,675 shares of the financial services provider's stock worth $4,163,000 after purchasing an additional 8,034 shares in the last quarter. Caprock Group LLC purchased a new stake in AON in the 3rd quarter valued at about $1,752,000. Veritas Asset Management LLP increased its stake in AON by 19.3% in the 3rd quarter. Veritas Asset Management LLP now owns 2,053,673 shares of the financial services provider's stock valued at $732,299,000 after buying an additional 332,685 shares during the last quarter. Finally, Savant Capital LLC lifted its position in shares of AON by 64.9% during the 3rd quarter. Savant Capital LLC now owns 19,092 shares of the financial services provider's stock worth $6,808,000 after buying an additional 7,512 shares in the last quarter. Institutional investors own 86.14% of the company's stock.

AON Stock Performance

Shares of AON stock opened at $313.61 on Friday. The firm's 50 day moving average is $324.93 and its 200 day moving average is $336.36. The stock has a market capitalization of $66.98 billion, a P/E ratio of 17.21, a PEG ratio of 1.64 and a beta of 0.72. Aon plc has a 12 month low of $304.59 and a 12 month high of $381.00. The company has a current ratio of 1.95, a quick ratio of 2.03 and a debt-to-equity ratio of 1.36.

AON (NYSE:AON - Get Free Report) last issued its earnings results on Saturday, May 2nd. The financial services provider reported $6.48 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $6.37 by $0.11. AON had a net margin of 22.54% and a return on equity of 43.50%. The business had revenue of $5.03 billion for the quarter, compared to analysts' expectations of $4.97 billion. During the same quarter in the previous year, the firm posted $5.67 EPS. The business's revenue for the quarter was up 6.4% compared to the same quarter last year. On average, sell-side analysts anticipate that Aon plc will post 19.02 earnings per share for the current year.

AON Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Friday, May 1st will be issued a dividend of $0.82 per share. This is a positive change from AON's previous quarterly dividend of $0.75. The ex-dividend date of this dividend is Friday, May 1st. This represents a $3.28 dividend on an annualized basis and a yield of 1.0%. AON's payout ratio is currently 16.36%.

Insider Activity

In other news, Director Lester B. Knight purchased 4,000 shares of the stock in a transaction dated Tuesday, February 10th. The shares were purchased at an average cost of $319.24 per share, with a total value of $1,276,960.00. Following the completion of the acquisition, the director owned 143,000 shares in the company, valued at $45,651,320. This represents a 2.88% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, General Counsel Darren Zeidel sold 5,040 shares of the firm's stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $325.79, for a total transaction of $1,641,981.60. Following the completion of the transaction, the general counsel owned 20,254 shares of the company's stock, valued at $6,598,550.66. This trade represents a 19.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.10% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the company. Cantor Fitzgerald upped their target price on AON from $393.00 to $412.00 and gave the company an "overweight" rating in a report on Monday, February 2nd. Weiss Ratings reissued a "hold (c)" rating on shares of AON in a research report on Tuesday, April 21st. TD Cowen restated a "buy" rating on shares of AON in a research note on Monday, March 16th. Bank of America raised AON from a "neutral" rating to an "outperform" rating and decreased their target price for the company from $398.00 to $397.00 in a research report on Friday, February 27th. Finally, Citigroup boosted their price target on shares of AON from $402.00 to $412.00 and gave the stock a "buy" rating in a report on Tuesday, February 3rd. Fourteen investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $397.88.

AON Company Profile

Aon plc is a global professional services firm that provides a broad suite of risk, retirement and health solutions to corporations, institutions and individuals. The company operates primarily as an insurance broker and risk adviser, helping clients identify, quantify and transfer risk across property, casualty, cyber and other areas. Aon also offers reinsurance brokerage and capital market solutions that connect insurers, reinsurers and corporate buyers.

In addition to traditional brokerage activities, Aon delivers consulting and outsourcing services in areas such as human capital, benefits, and retirement plan design and administration.

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